On-Site October 2019

OCTOBER 2019

AVOIDING THE SHOP TRUCK MAKERS BUILD TOWARD PREDICTIVE MAINTENANCE

RISING WATERS

INFRASTRUCTURE VS WORSENING STORMS

EQUAL FOOTING KEEPING UP WITH YOUR COMPETITION

MENDING FENCES

GCS, SUBS FIND COMMON GROUND

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VOLUME 64, NO.6/ OCTOBER 2019

COVER STORY 18 Staying out of the shop

Vocational trucks drive toward predictive maintenance

IN THIS ISSUE 7 Comment

18

Sprucing up a piece of construction history

10 News

The major developments

16 Construction Stats The key figures

37 Growing up Concrete pumps gain ground as construction and cities evolve

COLUMNS 51 Software Blockchain’s role in construction

52

37

Risk The level playing field assumption

54 Contractors and the Law The ‘prevention principle’

40 53 Index of Advertisers

29

40

47

The versatile role of heavy-duty telehandlers

Countering worsening storms with fresh infrastructure

New rules to help ease tension between GCs and subtrades

First in, last out

Rising waters

Mending fences

on-sitemag.com / 5

“BUILDING FOR THE FUTURE.” THREE GENERATIONS. “At Selge Construction, we’re a family business. My son-in-law and even grandson are involved and interested in this great occupation. I’ve built a good name in our marketplace with a reputation for quality work and integrity in the way we do business. And I choose Komatsu because they match my values. Their excavators help my crews and family carry on our goals: to provide the best job for an honest price. It’s these and many other reasons why Komatsu works for us!”

Marv Selge (with Noah & Justin) / Selge Construction, Inc. / Niles, MI

That’s why I am Komatsu komatsuamerica.com

© 2019 Komatsu America Corp. All Rights Reserved 037

COMMENT

Sprucing up a piece of construction history

Get the latest construction news!

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It’s old, plenty rusty and somewhat less refined than the far newer suspension bridge that stands beside it. But even after a century of wear and tear, the Quebec Bridge is something to behold. It’s worth hanging onto and it’s worth the cost of a new paint job.

Completed in 1917 after weathering two separate tragedies, the kilometre-long bridge over the St. Lawrence River in Quebec City is a feat of engineering. To this day, it’s the longest clear span cantilever bridge in the world, measuring 549-metres (1,801-feet) between its two main pillars.

Cantilever bridges are massive, heavy structures that are almost brutalist in appearance.

Steel arms, or cantilevers, extend toward the middle of the bridge to support a central span, while anchor arms reach outward from the main piers to counterbalance the weight.

Construction began on the Quebec Bridge along the banks of the St. Lawrence in fall 1900 and continued relatively smoothly for nearly seven years.

Tragedy struck one afternoon in August 1907. Around 5:30 p.m., residents in downtown Quebec City, a dozen kilometres away, heard a thunderous crash. In a matter of 15 seconds, thousands of tons of steel collapsed into the river. Of the 86 workers on the bridge at the time, 75 were killed, according to the official inquiry into the incident. One survivor, identified simply as Huot, escaped by sprinting off the bridge as it collapsed beneath him.

Design flaws and errors in judgement by on-site engineers, who observed issues in the weeks leading up to the disaster, were blamed for the collapse.

It took years to clear the river of debris and prepare for a second attempt. A new team of engineers designed a stronger and heavier bridge, utilizing nickel alloy steel for one of the first times on a large scale. Crews began work on the second bridge in 1913.

Construction progressed far faster than on the original and it was approaching completion

in 1916 when again, disaster struck. On Sept.

11, a crowd gathered beside the river to witness the central span of the bridge, which had been assembled off-site, get raised into place. As crews jacked up the huge steel piece, a component of the lifting apparatus failed, sending the 5,000-ton central span plummeting into the river. Even today, it remains at the bottom of the St. Lawrence.

13 workers died in the second accident and more than a dozen others were injured.

The builders were undeterred and began fabricating a new central span off-site. One year later, workers hoisted the new steel segment into place. A train carrying several hundred passengers crossed the completed bridge for the first time in October 1917.

Today, CN Rail owns the iconic bridge. The railway ensures the span remains structurally sound, but has been unwilling to set aside any funds for projects it views as cosmetic.

After years of quibbling over restoration work, the federal government has expressed an interest in buying back the piece of Canadiana. This August it appointed a negotiator to push forward with either a restoration deal or purchase. Local politicians and residents in Quebec City have also been long-time advocates of restoring the rusting bridge.

It wouldn’t be the first to get a new coat of paint. Another famed cantilever bridge – the Forth Bridge in Scotland – recently underwent a striking facelift. A UNESCO World Heritage Site, the bridge is a destination in its own right.

There’s no reason the Quebec Bridge shouldn’t be.

Estimated at several hundred million dollars, restoring the Quebec Bridge is admittedly a costly endeavour. Still, giving an irreplaceable piece of Canadian history a new lease on life is worth the cost of a paint job.

David Kennedy / Editor dkennedy@on-sitemag.com on-sitemag.com / 7

CONTRIBUTORS

MEET OUR CONTRIBUTORS FOR THIS ISSUE NATE HENDLEY / Freelance writer and author On what some see as the “Swiss Army knife” of the job site: “[Their] versatility, combined with excellent maneuverability on tough terrain makes telehandlers invaluable, all-round workhorses.”

www.on-sitemag.com / Fax: 416-442-2230

PUBLISHER | Peter Leonard (416) 510-6847 pLeonard@on-sitemag.com EDITOR | David Kennedy (416) 510-6821 dkennedy@on-sitemag.com ASSOCIATE EDITOR | Megan Hoegler (416) 510-5201 mhoegler@on-sitemag.com MEDIA DESIGNER - TEAM LEAD | Lisa Zambri lzambri@annexbusinessmedia.com ASSOCIATE PUBLISHER | David Skene (416) 510-6884 dskene@on-sitemag.com

SAUL CHERNOS / Freelance writer On how new infrastructure is helping Canadian cities respond to fiercer weather: “When it rains in Canada these days, it pours… Government response, while sometimes critiqued as insufficient, has hardly been made up of chump change.”

JACOB STOLLER / Principal, StollerStrategies On the role blockchain could play in construction: “A general contractor might, in the not-too-distant future, manage a project using a blockchain-powered smart contract.”

DAVID BOWCOTT / Global Director – Growth, Innovation & Insight, Global Construction and Infrastructure Group at Aon Risk Solutions On the dangers of assuming you and your competitors are on equal footing: “[A common] assumption made by contractors is that they are on the same “level playing field” as their competitors… jumping to this conclusion could be a very costly mistake.”

ACCOUNT COORDINATOR | Kim Rossiter (416) 510-6794 krossiter@on-sitemag.com CIRCULATION MANAGER | Urszula Grzyb (416) 442-5600 x3537 ugrzyb@annexbusinessmedia.com Vice President | Tim Dimopoulos (416) 510-5100 tdimopoulos@annexbusinessmedia.com COO | Scott Jamieson sjamieson@annexbusinessmedia.com Established in 1957, On-Site is published

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DIRK LAUDAN AND SIOBHAN SMALL / Borden Ladner Gervais LLP On the “prevention principle” and its importance to contractors: “The principle tends to encourage fair dealing. On the other hand, it also adds considerations to the legal framework that can go beyond what is clearly set out in the contract language, which can lead to misunderstanding and dispute.

Perhaps most importantly, it can be a touchstone for construction contractors in avoiding unfair treatment.”

On-Site receives unsolicited materials (including letters to the editor, press releases, promotional items and images) from time to time. On-Site, its affiliates and assignees may use, reproduce, publish, re-publish, distribute, store and archive such unsolicited submissions in whole or in part in any form or medium whatsoever, without compensation of any sort.

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8 / OCTOBER 2019

WHERE

BIG IR N &TECHSTAGE SHARE THE

INDUSTRY NEWS

The 4.8-kilometre stretch of road is technically challenging to complete and will cost more than $120 million per kilometre.

PHOTO: B.C. MINISTRY OF TRANSPORTATION AND INFRASTRUCTURE

INDUSTRY>NEWS B.C. begins procurement process for final stage of costly Kicking Horse Canyon highway project through scenic stretch of Rocky Mountains GOLDEN, B.C.—It’s been more than 15 years since British Columbia began work on widening a scenic 26-kilometre stretch of the Trans-Canada Highway through a narrow pass in the Rocky Mountains.

The Trans-Canada, or Hwy. 1, carries about 10,000 vehicles a day during the tourist-heavy summer months as it winds through Kicking Horse Canyon, just east of Golden, B.C. Three previous stages of work have widened 21-kilometres of the route to four lanes, added two key bridges and set the stage for the final leg of the job.

The province launched the procurement process for the fourth stage of the Kicking Horse Canyon project last week, issuing a request for qualifications (RFQ) to teams interested in bidding on the work.

It won’t come cheap.

Despite covering just 4.8-kilometres,

10 / OCTOBER 2019

the province has budgeted $601 million for the project – with $215.2 million of that figure being provided by the federal government. This compares to a cost of $326 million for the three previous phases combined.

The latest cost estimate for phase 4 is also a whopping $151 million higher than budgeted in 2016. The province said much of the increase can be chalked up to changes to general project costs, such as materials. Meanwhile, implementing the province’s controversial Community Benefits Agreement will add $35 million to the budget.

The tough conditions and need to safeguard workers are responsible for the project’s significant price tag – amounting to more than $120 million per kilometre. The Ministry of Transportation and Infrastructure notes the final phase of

the Kicking Horse Canyon job is the most technically challenging to complete, requiring significant excavation on the steep, unstable slopes. The relatively heavy traffic on the road and protection for the CP railway tracks running below are two other obstacles. Planners are aiming to keep the route open during construction, meaning there will be a focus on nighttime work and construction during the spring and fall shoulder seasons.

Contractors will have until mid-October to respond to the RFQ. The main aspects of the design-build contract include widening the road from two lanes to four, adding a median barrier and installing avalanche and rock fall protection.

The province plans to release a shortlist and issue a request for proposals for the work later this fall. Construction is scheduled to begin next summer.

Work starts on major Ontario rail project that requires tunnelling under 21 lanes of Hwy. 401 interchange TORONTO—Construction crews at a job site just east of Toronto’s Pearson International Airport have their work cut out for them. For the next two years, they’ll be digging a pair of tunnels under Canada’s busiest highway at what’s nearly its widest point.

Crews from EllisDon Corp. and the Canadian arm of Austria-based Strabag SE, are in charge of construction on the $116.9 million effort to build the twin rail tunnels under Ontario highways 401 and 409. Officials from Infrastructure Ontario and transit agency Metrolinx were at the Toronto job site July 26 to officially kick off construction on the project, which is part of GO Transit’s multibillion-dollar Regional Express Rail (RER) initiative.

Supplementing an existing tunnel wide enough for three tracks, the new tunnels will extend approximately 175 metres, far enough to get them under all 21 lanes that make up the 401/409 interchange in Etobicoke. Each new tunnel will add a single track, helping GO Transit increase train capacity on its Kitchener Corridor.

Along with EllisDon and Strabag on the construction side, the consortium taking on the job includes WSP Canada Inc., Dr. Sauer & Partners and Amec Foster Wheeler, which are responsible for the design.

“Constructing under one of the busiest stretches of highway is no easy task, but by working with Toronto Tunnel Partners, we are excited to use innovative engineering techniques for tunnelling that will allow us to bring more trains and more service to customers faster, giving them the service they need to get them to where they need to go,” said Stephanie Davies, executive vice-president for the GO Expansion at Metrolinx, in a release.

To build the tunnels, crews are employing the sequential excavation method (SEM) — also known as the new Austrian tunnelling method — Metrolinx said. Unlike tunnel boring machines, which typically move only forward and install concrete segments behind them to support the tunnel walls, the SEM technique uses excavators or roadheaders to dig out small sections that are then stabilized with shotcrete. This basic sequence is repeated until the entire length of the tunnel is complete.

Along with the tunnels, the multimillion-dollar project includes work on the footings and retaining walls that support one of the highway ramps above ground and the installation of rail signalling and communications infrastructure.

The overall goal of GO Transit’s RER project is to transition what is currently a commuter rail network into a two-way, all-day rail service. Increasing the number of tracks ducking under the 401/409 interchange is one critical component.

Work on the tunnel project at the northwest edge of Toronto is scheduled to be complete by late 2021.

With more tracks running under the highway interchange, GO Transit will be able to increase capacity on its Kitchener, Ont. Corridor.

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INDUSTRY NEWS

Brandt to buy Nortrax, creating coast-to-coast John Deere dealer REGINA—The Brandt Group of Companies has struck an agreement to buy the Canadian operations of John Deere dealer Nortrax.

More than two dozen dealerships owned by Nortrax Canada Inc. and Nortrax Quebec Inc. will change hands as part of the deal, putting all of Canada’s John Deere Construction & Forestry dealerships under the Brandt banner.

“The addition of Nortrax’s impressive branch and distribution network gives us an unprecedented opportunity to offer customers anywhere in Canada a consistent customer support experience, no matter where their projects take them.”

Shaun Semple, the company’s president and CEO, said in a release. “We are very proud to deliver the quality products and

Brandt will operate 56 dealerships coast to coast offering John Deere Construction & Forestry equipment following the acquisition.

support services that Canadian customers rely on for their success, every single day.”

The majority of the Nortrax dealers are in Ontario and Quebec. There are also three in Newfoundland and one in Happy Valley-Goose Bay, Labrador. The company is owned directly by Deere & Co. Following the deal, Brandt will operate 56 dealerships across every province

except P.E.I., as well as numerous service points. The privately-held company said the agreement will help “deliver unprecedented access to Deere products, parts and support services to Canadian contractors.”

Brandt did not release the financial details of the deal, but said it’s expected to close by late October.

After nearly two decades of work, construction starts on final phase of Autoroute 85 in eastern Quebec; costs to total $942.9M SAINT-ANTONIN, Que.—Work on the third and final phase of Autoroute 85 is underway in eastern Quebec, not far from the New Brunswick border.

Construction on the $942.9 million highway project began Aug. 6, according to Ottawa, which has committed $389.7 million in federal infrastructure funding to the work.

Also known as Autoroute Claude-Béchard, Hwy. 85 in the province’s Bas-Saint-Laurent region, breaks off Autoroute 20 at Notre-Dame-du-Portage, Que. and runs southeast to the New Brunswick border. The province has been working to complete the divided highway on the south shore of the St. Lawrence River east of Quebec City since the early 2000s.

Quebec has earmarked $553.2 million for the final phase.

“I am happy to announce the start of this major work on Autoroute 85, which will significantly improve safety and traffic flow for users,” Rémi Massé, MP for Avignon–La Mitis–Matane– Matapédia, said in a release. “It is another step toward redeveloping Route 185 into an uninterrupted highway link between Quebec and New Brunswick, which will support trade with the Maritime provinces by facilitating the movement of people and goods.”

12 / OCTOBER 2019

Construction crews will tackle the third phase of work on Hwy. 85 in separate stages, starting with an 8.3-kilometre segment in Saint-Antonin, Que. this summer. All together, the final phase of the highway project includes seven segments of road totalling about 40 kilometres.

Work on the project is scheduled to run until 2021.

The highway project on the south shore of the St. Lawrence River has been ongoing since the early 2000s.

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INDUSTRY NEWS

SNC-Lavalin’s exit from fixed-price construction jobs shakes up shortlists for two big-ticket B.C. projects VANCOUVER—The shortlists for Metro Vancouver’s Broadway Subway project and the Pattullo Bridge Replacement project

are both now missing a prominent name.

The British Columbia government had advanced each infrastructure job to the

request for proposals stage earlier this year and narrowed the field of bidders to three teams for each. With SNC-Lavalin’s recent decision to quit taking on fixedprice construction contracts, however, the province has revised each shortlist.

The Montreal-based company was included in a construction capacity on each of the jobs, with several of its subsidiaries making up the entire project team for the $2.8 billion subway extension.

Two of the three consortia for the Broadway subway project remain unchanged from the original shortlist, while the final team has been overhauled.

In place of the West 9th Partners team on the original list, the province has elevated the UrbanTransit consortium, which is headed by Salini-Impregilo and Astaldi Canada as the design-build contractors.

The RFP for the subway project will remain open until April of next year and the province expects to pick a team to take on the work by mid-2020.

One of the teams for the $1.4 billion Pattullo Bridge Replacement project, meanwhile, has also been adjusted from the original shortlist. SNC-Lavalin remains on the job, but its role would shift from a construction and design capacity to solely design.

Instead, Acciona Infrastructure Canada Inc. and Aecon Group Inc. would take on the construction aspect of the project.

The winning bidder for the bridge work will erect a new four-lane span between Surrey and New Westminster to replace the current structure that’s more than 80years-old. It will also be responsible for removing the old bridge.

B.C. is scheduled to pick a team to build the new Pattullo Bridge sometime this fall.

The subway project will extend Vancouver’s Millennium SkyTrain line 5.7 kilometres, the majority of that being underground.

14 / OCTOBER 2019

PCL consortium wins $1.5B contract to rebuild four-tower government complex in Toronto TORONTO—Infrastructure Ontario has awarded a contract for a major reconstruction project in downtown Toronto to a construction group led by Fengate Asset Management and PCL Constructors Inc. The government agency said Aug. 9 the Fengate PCL Progress Partners consortium will take on the approximately $1.5 billion contract to strip down and rebuild four government office towers. Known as the Macdonald Block and located just east of Queen’s Park, the four buildings were originally completed in the early 1970s and have not undergone any major renovations since. They are connected by a two-storey podium, include two levels of underground parking and cover a total of 1.7 million square feet.

The design, build, finance and maintain contract covers all four of the towers, which stand between 10 and 24 storeys.

PCL will serve as the design-builder on the job, while WZMH Architects will manage the design and Johnson Controls Canada will oversee facilities management.

Fengate and PCL will share the responsibilities as developers.

The reconstruction work covers extensive renovations to essentially all building components, including electrical, water, heating and cooling systems. With crews stripping the towers down essentially to their structural cores, the rebuild also includes numerous changes to layouts and improved accessibility.

The maintenance stage of the P3 contract will last 30 years.

Before the buildings were emptied to make way for construction, the complex housed more than 3,000 workers.

Work on the project is scheduled to reach substantial completion by 2024.

Government workers will then move back in in several stages.

The four-tower complex will be reduced to its structural core before being rebuilt.

PHOTO: INFRASTRUCTURE ONTARIO

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2019-02-15 10:02 AM

CONSTRUCTION STATS Workers Employed in Construction by Month

A selection of data reflecting trends in the Canadian construction industry

2018

CONSTRUCTION INDUSTRY LOSES 2,100 JOBS IN AUGUST AFTER MAJOR JULY GAIN The construction industry’s labour market gave up some of its earlier gains in August with employment declining 0.1 per cent on the month, Statistics Canada said in its latest assessment.

The 2,100 jobs, seasonally adjusted, lost in August follow a hiring spree in July, during which employers added 25,000 workers to their rosters.

The construction labour market has been in the red in all but two months so far this year, but each of those two months have been stellar. Year-over-year employment in the industry was up 3.5 per cent, or just shy of 50,000 jobs, compared to August 2018, according to the latest Labour Force Survey.

Canada’s overall labour force has increased 2.5 per cent over the same time span.

2019

January 1,433.9 February 1,433.9 March 1,452.2 April 1,433.3 May 1,420.3 June 1,447.5 July 1,435.2 August 1,418.8 September 1,446.8 October 1,443.4 November 1,458.2 December 1,453.4 January 1,444.9 February 1,438.3 March 1,435.9 April 1,465.1 1,456.5 May June 1,449.1 July 1,474.1 August 1,472.0 In thousands of workers, seasonally adjusted SOURCE: STATISTICS CANADA

SECOND QUARTER BRINGS NO END TO HIGHER BUILDING PRICES Construction costs continue to rise, despite the end of steel tariffs blamed for increasing prices through much of last year. In the second quarter, non-residential building costs climbed 0.6 per cent, according to Statistics Canada. The increase was, however, the lowest of any quarter since 2017 and compared to a 0.8 per cent increase in the first quarter of this year.

Statistics Canada said high building costs in Montreal and Toronto fuelled the increase. In both cities increasing bills for structural steel framing and concrete products were contributing factors.

PER CENT INCREASE IN NON-RESIDENTIAL BUILDING COSTS

QUARTER INCREASE

2017

Q1 0.9

Q2 0.8

Q3 0.6

Q4 0.8

2018

Q1 0.9

Q2 1.4

Q3 1.6

Q4 1.1

2019

Q1 0.8

Q2 0.6

16 / OCTOBER 2019

SPENDING ON NON-RESIDENTIAL BUILDINGS KEEPS INCHING UPWARD IN JUNE

Commercial +0.9%

Institutional +1.4%

Industrial +0.7% Non-residential builders are keeping busy.

Investments in the sector climbed one per cent in June to reach $4.83 billion for the month, up from $4.78 billion a month earlier, according to the latest Statistics Canada data.

The commercial, institutional and industrial segments of the industry each increased slightly in June. The institutional component saw the largest jump of 1.4 per cent. Statistics Canada pointed to large-scale projects, such as the Calgary Cancer Centre for driving spending higher. Costs in the commerical and industrial segments of the industry increased 0.9 and 0.7 per cent on the month.

The gain on the non-residential side stands in contrast to a 1.8 per cent decline in the Canadian residential building market in June.

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STAYING O OF THE SHOP 18 / OCTOBER 2019

VOCATIONAL TRUCKS

OUT Big data, vocational trucks and the drive toward predictive maintenance

BY DAVID KENNEDY

“If you have maintenance that’s required every 30,000 miles, it could be that you could wait for that maintenance further down the road and not have to do it at 30,000 miles,” Horton says.

For the time being, the new offering focuses on powertrain-related maintenance services, but Mack expects to branch out the technology further, making use of the prodigious amount of data it has at its disposal. Currently, there are more than 100,000 trucks equipped with GuardDog Connect.

Other OEMs are following suit.

FROM REACTIVE TO PROACTIVE Predictive maintenance in the truck market is still in its early stages.

It’s a similar story in other segments of the transportation industry, which are slowly moving from a reactionary approach to maintenance to a proactive one. Rail manufacturers such as Alstom, Bombardier and Siemens for instance, are all embracing a more predictive approach to servicing their trains. Likewise, major elevator makers such as the Otis Elevator Co. and Thyssenkrupp are collecting huge troves of data both to quickly diagnose the specific cause of a breakdown and to take preventative action before a problem occurs.

For work trucks, the ever-evolving telematics platforms offered by the OEMs form the foundation of the shift toward next-generation maintenance.

“Connected vehicles broadcast a variety of data such as engine hours, braking severity, load factor and transmission top gear time that helps fleets understand how vehicles are being operated, identify trends across the fleet and determine which serviceable parts or systems they would like to develop a solution for,” says Jason Krajewski, director of Truck Connectivity for Detroit Connect, the suite of technologies that underpin Detroit engines in Freightliner and Western Star trucks.

Detroit Connect Virtual Technician on-sitemag.com / 19

PHOTO: MACK

U

ptime matters, particularly when it comes to work trucks. Whether it’s a five-person crew waiting on an aggregate delivery, or an entire job site paralyzed by a concrete mixer stalled in an inopportune spot, delays are always costly.

Until now, carrying out regular preventative maintenance to minimize breakdowns has been about the best construction crews and their suppliers can do when it comes to caring for their vocational vehicles. It’s effective, but it has its limits.

Today, as with all things in construction, advancing technology is leading truck manufacturers in a new direction – one that promises to boost vehicle uptime, bolster productivity and keep materials flowing steadily to and from job sites.

Telematics have become standard on many vocational fleets in recent years, sending an endless stream of fault codes and other performance metrics to OEMs that compile the big data sets to assess things like fleet health and vehicle uptime.

As helpful as these figures can be, they’re also stepping stones. Increasingly, truck makers are also employing the data to fuel a shift away from scheduled maintenance and toward forming a more proactive approach to shop time.

“You can’t just collect data without having a plan for something to do with it,” says Roy Horton, director of product strategy at Mack Trucks. “One of the things we’re doing with data is… taking another step forward with predictive maintenance.”

This August, Mack introduced a new dynamic maintenance offering that builds on its GuardDog Connect telematics platform. It also deepened ties with Internet of Things firm Noregon Systems Inc., which it works with on its user interface for dealers. The goal is to leverage vehicle data analytics to replace traditional “set mileage” maintenance with plans that cater to individual fleets or vehicles.

PHOTO: KENWORTH

PHOTO: FREIGHTLINER

VOCATIONAL TRUCKS

also steps in when a fault code “event” occurs. It relays information about the fault through email or a notification within an online portal, detailing the severity of the issue, whether the driver is able to resolve the problem and if immediate service is required.

20 / OCTOBER 2019

“If the situation is critical, engine data from 60 seconds before and 15 seconds following the fault event is transmitted to the Detroit Customer Support Center (CSC), where experts analyze the data and determine the best resolution,” Krajewski says.

By assessing the telematics data

provided through Detroit Connect Virtual Technician, service managers can also pinpoint areas a unit isn’t being run optimally and instruct drivers to make adjustments, he adds.

“Service managers can also look to data to gain insights into service intervals on heavy-duty vehicles,” he says. “For example, they can download a list of faults across their fleet for the last 30 days as well as the fault history for individual vehicles, enabling them to conduct further analysis on fault events occurring on the vehicles.”

Additional intelligence can also help point drivers in the right direction.

Kenworth TruckTech+ Remote Diagnostics, for instance, relays real-time engine health information to fleet managers and dealers.

When an issue occurs, the system issues a dashboard notification with instructions for operators. Depending on the severity of the problem, drivers can be told to take no action, tackle the issue at the next service interval, head to the closest dealer for service, or pull over immediately to prevent Continued on pg. 25

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YOU’LL NEVER HEAR THEM SAY “NEVER” WHEN FACED WITH TAKING ON THE TOUGHEST TERRAIN, MANEUVERING THE STEEPEST GRADES, AND HAULING THE HEAVIEST PAYLOADS. BECAUSE THEY KNOW WE’RE ALL COUNTING ON THEM TO BUILD THE INFRASTRUCTURE WE DEPEND ON. THEY ARE CANADA’S HARD-WORKING TRUCK DRIVERS. AND TO EACH AND EVERY ONE WE SAY THANK YOU. FOR YOUR COMMITMENT. DEDICATION. AND OF COURSE, YOUR DRIVE.

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VOCATIONAL TRUCKS Continued from pg. 20

PHOTO: VOLVO

possible damage.

If service is needed, TruckTech+ displays the location of the three closest repair locations on a map. The information can also be forwarded to the servicing dealer, letting them skip the usual diagnostic guessing game. Knowing exactly what’s wrong before a vehicle enters the shop also translates to considerable time savings for technicians who can prepare any parts or tools necessary ahead of time.

Of course, this also cuts down on vehicle downtime.

Likewise at Volvo Trucks, telematics are seen as an increasingly key offering – one of the “building blocks” of predictive maintenance. The company’s Remote Diagnostics platform uses a truck-mounted device to transmit data to a central server.

Volvo’s web-based ASIST portal handles much of the data, letting owners and drivers monitor truck status, manage repairs and chat directly with their dealer.

“Remote Diagnostics is a cutting-edge,

on-sitemag.com / 25 OnSite_Oct_StellarIndustries.indd 1

2019-09-20 2:33 PM

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Powerful, durable and versatile, the Mack® Granite® can handle any job, in any condition. Toughness is just one way we earned Alaska DOT’s trust, and we’ll work hard to do the same for you. Because Mack delivers confidence and performance to get the job done. See how Mack does more, so your business earns more at MackTrucks.com/Alaska

VOCATIONAL TRUCKS proactive telematics service that monitors powertrain fault codes dynamically and enables the customer to make the right decision based on those codes,� says Ashraf Makki, product marketing manager at Volvo Trucks North America.

Wireless software updates are another promising development, Makki notes. “Over-the-air software and parameter updates are a big area of focus as we see tremendous potential to maximize uptime for our customers with these technologies,� he says. “Eventually we expect telematics to enable more customization, allowing customers to further optimize their trucks for specific applications.�

Foolproof predictive maintenance remains a work in progress, but a time when crews will never have to sit idle waiting for a truck – at least as a result of a breakdown – is no longer science fiction. “The construction industry is becoming more aware of the telematics capabilities in these vehicles and the value it provides,� says John Felder, product marketing manager for Volvo Trucks North America. “Taking the data we gather from these vehicles and applying it with its operational functions allows us to optimize operations and minimize downtime on job sites.�

One of the tricks will be delivering data to clients in ways they can make use of it. “Customers are embracing big data to enhance as many facets of their operations as possible,� Krajewski says. “The challenge we face is presenting the data in a consumable manner to reduce the cost of ownership throughout the fleet.�

As in other aspects of construction, the march of vehicle technology will continue to change and improve the way work gets done. There will be more advancements to come as vocational truck OEMs continue their efforts. “We are continuing to explore and expand the benefits of connected vehicle data,� Krajewski says. “We want to bring useful, informative and actionable insights into all the data being transmitted from our connected vehicles.�

PHOTO: WESTERN STAR

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First in,

TELEHANDLERS

last out What’s new in the versatile world of heavy-duty telehandlers

BY NATE HENDLEY

‘‘W

PHOTO: SNORKEL

e always say the telehandler is the Swiss Army knife of the job site [because] of its ability to do so many different jobs,” says John Boehme, senior product manager at JLG Industries Inc. “It’s the first machine on the job site when they break ground and the last to leave.”

Telescopic handlers are typically used for pick and carry applications and for lifting materials to height. They can be fitted with multiple attachments for a variety of other duties as well. This versatility, combined with excellent maneuverability on tough terrain makes telehandlers invaluable, all-round workhorses.

“For picking and placing material on a job site, there is no machine that can match the productivity of a telehandler… They can handle unloading, staging, material moving and placing as well as job site cleanup,” says Josh Taylor, product manager with Genie, a unit of Terex Corp.

Among OEMs that make telehandlers, safety, connectivity and hybrid/ electric power are all top of mind.

“Globally, there is increasing demand for alternative power sources to the diesel engine to meet increasing regulations on emissions and noise,” says Matthew Elvin, CEO of Snorkel and its parent firm Xtreme Manufacturing. “Snorkel is currently testing the use of lithium battery technology for some of its diesel-powered units, including compact telehandlers.”

Telematics and fleet management systems are becoming increasingly common in telehandlers, as standard or optional features.

“One of the global megatrends is digitization,” Boehme notes. “And in the digital world, the first thing that comes to mind is connectivity.

How can I better connect my fleet? How can I better interact with my fleet?”

Here’s a look at what’s new and/or noteworthy in the heavy-duty telehandler segment – that is, telehandlers with a lift capacity of 10,000 pounds (4,500 kilograms) or more: on-sitemag.com / 29

TELEHANDLERS

GEHL

release a new 12,000-pound lift capacity, 55-foot machine in January 2020.

Manitou’s optional Easy Manager telematics system provides remote equipment, performance and maintenance monitoring in real-time.

PHOTO: GEHL

The RS10-55 Mark 74 and RS10-55 GEN:3 are the latest additions from Gehl in the heavy-duty telehandler segment.

The RS10-55 Mark 74 has a lift capacity of 10,000 pounds, with a maximum lift height of 55 feet, one inch and forward reach of 41 feet, two inches.

The RS10-55 GEN:3 shares these same specs. Both machines feature main control joysticks equipped with FNR (forward-neutral-reverse).

For safety purposes, the firm recently introduced the Gehl rear-view video and rear-view video and radar options for some telescopic handlers, including the RS10-55, according to Steve Kiskunas, product manager for Telescopic Handlers at Manitou North America, which owns the Gehl brand.

Meanwhile, the company plans to

The GTH-1056 telehandler from Genie offers a maximum lift capacity of 10,000 pounds, lift height of 56 feet, 10 inches and forward reach of 42 feet.

Other features include an all-in-one

30 / OCTOBER 2019

multifunctional joystick for intuitive operation of all hydraulic controls, a four-speed powershift transmission and a powerful 120 horsepower engine, Taylor says. The Genie GTH-1256 and GTH-1544 models

are powered by turbocharged 134 hp engines and dual-range hydrostatic transmissions, he adds.

The GTH-1256 has a 12,000-pound lift capacity and 56-foot lift height while the GTH-1544 offers 15,000 pounds of lifting capacity and a 44-foot lift height.

“We have made improvements to serviceability in all models, with common locations in the cab for diagnostic ports, additional display capability of service codes and we have made Genie Lift Connect telematics available on all units to provide remote monitoring capabilities for fleet owners,” Taylor says.

In response to tougher regulations on diesel emissions, Genie has introduced hybrid solutions, such as the Genie FE (fuel-electric) hybrid system on articulated and telescopic booms as well as an electric-drive system in its boom and scissor lift lines.

PHOTO: SGENIE

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TELEHANDLERS

Boehme notes. A load management information system (LMIS) then graphically depicts the location of the load within the load chart and assists the operator in navigating the boundaries of the chart. Finally, a load stability indicator (LSI) works in conjunction with the LMIS to alert opera-

PETTIBONE Pettibone recently unveiled several new heavy-duty telehandlers, including the Extendo 1246X with a lifting capacity of 12,000 pounds, maximum lift height of 46 feet, six inches and a 30-foot forward reach. The 1246X utilizes a 117 hp Tier

32 / OCTOBER 2019

4 Final diesel engine and has an ergonomic seat, plus steering wheel, joystick and pedal positions aimed at improving comfort.

Pettibone’s new Traverse T1258X telehandler also features a 12,000-pound

tors to possible overloads.

JLG also offers a telematics option known as ClearSky that provides data on machine performance, maintenance issues and location, among other details. It also lets customers set up geofences to protect fleets against unauthorized operation.

lift capacity with a lift height of 58 feet, six inches, which is identical to its landing height. This machine boasts a traversing boom carriage that offers 70 inches of horizontal boom transfer.

This traversing feature is “One big thing that makes us unique… which no one else can offer on the market,” says Mitch Fedie, marketing manager at Pettibone.

“It gives you a smoother operation for landing loads at height. You’re more efficient and your landing height is your lift height. Traditionally with a fixed boom machine, it’s two to three feet lower, so you have to coordinate multiple boom functions to land heavy supplies.”

PHOTO: PETTIBONE

“In 2017, we launched our two highest capacity models, the 1644 and 1732. It was essentially JLG’s entrance into the high capacity segment of the market,” Boehme says.

The 1644 has a 15,650 pound maximum lift capacity, a lift height of 43 feet, seven inches and maximum reach of 31 feet, one inch. For its part, the 1732 has a 16,755 pound maximum lift capacity, lift height of 31 feet, eight inches, and maximum reach of 18 feet, seven inches.

JLG has introduced a telehandler feature called SmartLoad Technology, which blends three existing solutions.

Automatic attachment recognition lets the machine know what the attachment is before it’s coupled to the machine,

PHOTO: JLG

JLG

B O B C A T. C O M / T O U G H C O N S T R U C T I O N

Everything we put into Bobcat® equipment is designed to make more of whatever you bring to the job. Whether it’s strength, versatility, speed or agility, it’s built around you.

Bobcat is a Doosan company. Doosan is a global leader in construction equipment, power and water solutions, engines, and engineering, proudly serving customers and communities for more than a century.

Bobcat ®, the Bobcat logo and the colors of the Bobcat machine are registered trademarks of Bobcat Company in the United States and various other countries. ©2019 Bobcat Company. All rights reserved. | 1368

TELEHANDLERS

SNORKEL inches and a forward reach of 41 feet, four inches. The machine is also only seven feet, six inches wide.

Xtreme Manufacturing LLC, the majority shareholder in Snorkel, also has a full docket of new equipment. The company

introduced the XR1055 in 2018, which has a 10,000-pound lift capacity, maximum lift height of 55 feet and forward reach of 39 feet.

Xtreme has also been upgrading existing models. Last year, Xtreme boosted the lift capacity of the XR1045 from 10,000 to 11,000 pounds and increased its maximum lift height by two feet, to reach 47 feet in total. The machine is now called the XR1147.

Elvin says Xtreme currently makes the largest range of heavy-duty, high capacity telehandlers in North America, up to the XR7038, which can lift 70,000 pounds.

High-capacity telehandlers from Xtreme can be fitted with a pipe and pole grapple, among other attachments.

Xtreme’s machines come standard with intuitive controls and cabs boasting 360 degrees of visibility.

PHOTO: SNORKEL

At the World of Concrete 2019 show in Las Vegas, Snorkel unveiled “its largest telehandler to date: the SR1054,” reports Elvin.

The SR1054 can lift 10,000 pounds, has a maximum lift height of 53 feet, nine

“ 34 / OCTOBER 2019

KG “Globally, there is increasing demand for alternative power sources to the diesel engine to meet increasing regulations on emissions and noise.”

Matthew Elvin, Snorkel

Telehandlers with a lift capacity of

4,500 kilograms (10,000 pounds)

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CONCRETE PUMPS

GROWING UP Concrete pump market gaining ground as cities evolve, contractors see time and safety benefits

BY DAVID KENNEDY

C

Pumped concrete is taking on a larger role in the construction industry as pump and boom technology evolves.

on,” Dawley added. “Those customers are opting for our stationary pumps, or line pumps.”

Along with evolving building practices, advancing pump technology is driving the slow shift from traditional tailgating.

When it comes to truck-mounted pumps, Putzmeister, which was acquired

by China-based Sany Heavy Industry in 2012, primarily uses Mack Truck chassis.

It performs numerous alterations to the

chassis, including adding axles and installing twin steer, at its Racine, Wis. facility.

“From a chassis relationship perspective, that integration between machines is absolutely critical,” Dawley said. “The rigidity of the product, the durability of the product is paramount and being able to handle the forces and the loads that are put on the machines, especially with the large booms.”

Mack chassis also play a leading on-sitemag.com / 37

PHOTO: MACK

ities across North America are on an upward trajectory, literally, as more and more mid- and high-rise developments take root to accommodate an increasing number of people moving to urban centres.

As skylines in places such as Toronto, Seattle, Montreal, Vancouver and Los Angeles grow higher, the construction industry is evolving to meet the new demands.

A shift in the concrete industry is one prominent example.

Though tailgating is still the top method for pouring concrete, accounting for about half the market, pumping concrete has gained significant ground over the past two decades. In the U.S. for instance, pumping now accounts for about 34 per cent of concrete placed, up from 20 per cent in 2000, according to major U.S. concrete contractor Brundage-Bone Concrete Pumping Inc. The trend is expected to continue.

Jonathan Dawley, president and CEO of Putzmeister America Inc., said contractors are turning to equipment like boom pumps, truck-mounted conveyors and stationary pumps mounted on tower structures to pour concrete more often.

“There is a move toward urbanization.

These buildings are getting taller and more people are moving to the city,” he said at a recent event hosted by Mack Trucks.

“Right now... particularly on the West Coast, as well as in places like Toronto, there’s a lot of high-rise activity going

CONCRETE PUMPS

Operators run a pump truck’s boom using a remote, keeping them at a safe distance and allowing them to see the concrete as it’s poured.

The largest truck-mounted boom pumps can extend about 65 metres. For harder-to-reach locales contractors opt for line pumps that often use custom-built piping systems.

role at Putzmeister competitor Schwing America Inc., which mounts its pumps on trucks at a facility just outside Minneapolis, Minn. China’s Xuzhou Construction Machinery Group (XCMG) purchased a majority stake in Schwing in 2012.

On-Site was among the construction press to tour the two pump manufacturing facilities this August.

“These are not standard off-the-shelf

38 / OCTOBER 2019

vehicles running up and down the road,” Roy Horton director of product strategy at Mack Trucks, said, “They’re developed for a specific task.”

Schwing’s truck-mounted pumps range in size from 17-to 65-metre booms. The smaller pumps have three axles, while the largest have eight – enough to distribute the considerable weight on the pump and boom and meet bridge and road rules.

Outriggers stabilize the truck while operators use a remote to control the boom and pump concrete at a safe distance.

“The typical concrete pump places 800,000 pounds of material in one hour,” Tom O’Malley, senior vice-president of sales and marketing at Schwing America Inc. said. “It’s a really phenomenal accomplishment.”

Along with the precision a boom pump affords, contractors can save considerably on time and labour when using a pump as opposed to tailgating, O’Malley noted.

Pumps are a must when building many multi-unit residential, institutional and industrial buildings, but homebuilders are also increasingly turning to pumps to pour residential foundations. They can help contractors save on excavation costs, and using their long booms, crews can get concrete into hard-to-reach areas a truck couldn’t access.

There’s also a safety element. While typical mixer trucks need to back up very close to where they’re pouring, pumps can remain at a safe distance where there’s little to no risk of their losing their footing.

Still, for the increasing number of building projects stretching above 200 feet (about 60 metres) a truck-mounted boom pump simply can’t reach. On these jobs, builders can opt for trailer-towed pumps, or placing booms that climb with the high-rise.

“They climb with the facility like a climbing tower setup so that we can pump into the forms of the building on a continuous environment,” Dawley said. “We provide all the piping and all of the tower structure that goes up into the high-rise for all of the floors.”

For projects such as tunnels, line pumps are often up to the task.

For easier-to-reach jobs, truckmounted conveyors, or Telebelts – as Putzmeister calls them – are also an option.

Similar to boom pumps in their reach, these machines use a conveyor system that can move all kinds of materials, concrete included. They handle high volumes of material, but are far less accurate in placing concrete than a boom pump.

STORMWATER

RISING WATERS Canadian communities counter worsening storms with fresh infrastructure work

W

hen it rains in Canada these days, it pours.

Just six years ago, torrential rains dumped multiple summers worth of rain on parts of southern Alberta in just 48 hours. Mudslides closed sections of the Trans-Canada Highway and damage to homes and other structures exceeded $6 billion. Last year in Vancouver, flash flooding swamped a rapid transit tunnel as well as roads and

40 / OCTOBER 2019

BY SAUL CHERNOS highways. This past spring it was eastern Canada’s turn. Heavy rain and melting snow in New Brunswick overwhelmed some 100 roads, including the Trans-Canada, while more than 5,000 homes in Quebec were underwater or completely surrounded. Flooded pathways close to Canada’s Parliament buildings struck close to home for politicians. Ottawa Mayor Jim Watson declared a state of emergency as hundreds of soldiers sandbagged a cresting Ottawa River even as it rapidly filled low-lying

dwellings in the Canadian capital.

Government response, while sometimes critiqued as insufficient, has hardly been made up of chump change. This spring’s floods in Fredericton marked the city’s third major flood in 11 years and the Liberals announced $11.4 million in August to beef up protection and maintain essential services there should circumstances repeat.

“People have seen first-hand the damage and uncertainty caused by

Calgary experienced a devastating and costly flood in 2013 when the Bow and Elbow rivers spilled over their banks due to intense rainfall.

extreme weather events,” Prime Minister Justin Trudeau said. In this case, the money came from the $2 billion Disaster Mitigation and Adaptation Fund (DMAF), one of several federal funds, reflecting various levels of need and intent, available to help municipalities address flooding and other climate resiliency and disaster mitigation pressures.

“Since November 2015, federal funding totalling more than $4.4 billion has been invested in 2,882 stormwater, wastewater, drinking water and disaster mitigation projects across Canada,” says Sabrine Barakat, a spokesperson for Infrastructure Canada. In an e-mailed response to questions, Barakat says the DMAF accounts for more than $1.5 billion of the

federal investment and has helped finance 48 projects.

Separately, the New Building Canada Fund has provided nearly $118 million towards 41 disaster mitigation projects and municipalities can use federal Gas Tax Fund (GTF) dollars for similar works. “The GTF makes more than $2 billion a year available to more than 3,600 communities across the country who use this fund to develop approximately 4,000 projects per year,” Barakat says. “To empower municipalities to invest in their local infrastructure priorities, Budget 2019 includes a one-time top-up of $2.2 billion to the federal Gas Tax Fund.”

While the federal government contributes towards these infrastructure projects,

governments take a cost-sharing approach, with provinces, territories and municipalities also contributing but with planning and design generally occurring locally and filtering towards higher orders of government through grant application processes.

A list of projects Infrastructure Canada has helped finance shows the breadth of flood-related efforts underway across the country, including natural protections and the replacement of underground water pipes in Yellowknife, the rehabilitation of riverbanks and drainage systems and construction of water storage facilities in Kelowna, B.C., new storage and conveyance infrastructure in Saskatoon, and water treatment and sewer works in St. John’s. on-sitemag.com / 41

STORMWATER on major thoroughfares, damaged trunk sewers, inundated countless basements and overwhelmed combined storm-sanitary sewers to send raw sewage flowing into nearby waterways. In 2003, after considerable planning, the city launched what’s

“We recognize the need to manage stormwater from two aspects — quantity that falls at one time as well as quality… before we release it back to the environment.”

Lou Di Gironimo, City of Toronto

2018, a sudden, unexpected downpour in the downtown business core left two men trapped in an office elevator watching the water rise around them before they were rescued. Floodwaters have created massive sinkholes

arguably the country’s biggest water-related remediation effort yet, a 25-year Wet Weather Flow Master Plan (WWFMP) designed to curb flooding, tackle polluting overflows and protect the city’s natural features.

At Toronto’s Ashbridges Bay Treatment Plant, crews excavate a shaft for the 10.6-kilometre Coxwell Bypass Tunnel. The tunnel is part of the overall Don River and Central Waterfront project.

42 / OCTOBER 2019

Combined sewers exist mostly in the downtown core and date back to the mid-1800s, when sewage was dispatched in open ditches and immediate action was needed to halt a lethal cholera outbreak.

While the WWFMP doesn’t call for systemwide separation, some separation will occur on an opportunistic basis — for instance, where road or sewer works are already underway. Toronto Water general manager Lou Di Gironimo says separation is expensive, adding that flooding can be curtailed by managing stormwater on-site and preventing the overwhelming of infrastructure.

The plan instead takes a watershed approach, with at-source measures such as rooftop downspout disconnections and permeable surfaces, followed by conveyance measures such as sewer fixes, streambank repairs and new storage tunnels, as well as end-of-pipe solutions

PHOTO: CITY OF TORONTO

Toronto hasn’t endured the kind of widespread, overwhelming flooding that has resulted in large-scale evacuations, but Canada’s most populated city has experienced localized strikes with some pretty perilous consequences. In August

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STORMWATER

such as treatment plant and stormwater pond upgrades. “We recognize the need to manage stormwater from two aspects — quantity that falls at one time as well as quality… before we release it back to the environment,” Di Gironimo explains.

Some of the work is projected to extend through 2038, about a decade longer than initially forecast, due to the size and scale of these projects. However, more than $1 billion has been spent thus far, with some components completed or well underway. The city phased in downspout disconnections and addressed other low-cost policy pieces early on. Large stormwater management ponds near the mouth of the Humber River and further north in Earl Bales Park are now online, trapping polluted stormwater for absorption by aquatic vegetation. Crews have also used timber logs, bioengineered cribs and, where water flows swiftly, large limestone slabs to stabilize creek banks and stimulate new, protective growth.

These measures are just the start. Plans for more than $2 billion worth of work on the Don River and Central Waterfront project are particularly ambitious, with construction already underway on an 11-kilometre

44 / OCTOBER 2019

tunnel, six metres in diameter, running along the Don River down towards the Ashbridges Bay Treatment Plant.

“That’s the first phase and there’s other phases to be built over time,” Di Gironimo says, describing plans to refurbish the plant and add a natural land mass to offer additional protection. Also on tap are constructed wetlands in the Don Valley, stormwater outflows along the city’s western waterfront in Etobicoke, and a stormwater treatment facility at the mouth of the Humber. “Once we’re all done, it will probably be about $2.5 to $3 billion to do all of the work that’s under the Wet Weather Flow Master Plan, including basement flooding [prevention].”

Certainly, with the breadth of projects underway and planned, there’s plenty of opportunities for a variety of contractors. In Toronto’s case, Di Gironimo says ongoing basement flooding prevention spells considerable remaining work, from tunnels, shafts and treatment facilities along the harbour, to pipes and other engineering improvements across the city. These include a $100-million sewer project in midtown and a $220-million tunnel project in the old City of York.

“They’re being designed right now and will be tendered within a year or two,” Di Gironimo says.

With Canadian municipalities bracing not only for increasingly intense storms but in some cases for projected rapid population growth, Di Gironimo has no shortage of advice.

While flooding of basements and roads might seem like separate problems, they’re largely related. “If you design roadways properly, with appropriate curb design, roadways are actually supposed to act as temporary storage,” Di Gironimo says, emphasizing that roads engineered to accommodate small volumes of water without disrupting pedestrians or vehicles reduce the potential it will gather where it can cause greater harm. “A lot of our subdivisions are not near creeks and rivers, nor were they designed to channel into a creek or river. That’s why you see basement flooding in certain parts of the city.”

Ultimately, city staff need to know their infrastructure inside-out. “Complete the engineering assessments to see how your system is performing and identify any design challenges,” Di Gironimo recommends.

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THE PAYMENT CHAIN

MENDING FENCES New prompt payment rules may help smooth out relationship between GCs, subtrades

BY DAVID KENNEDY

A

little tension between owners, general contractors and the subtrades is par for the course on a job site. Throughout the construction pyramid, brushing shoulders on occasion is just a natural part of the business.

“It’s been there as long as I can remember to different levels of seriousness,” said

Clive Thurston, president of the Ontario General Contractors Association (OGCA).

While parties find a way to work together more often than not, occasionally frustration boils over. In early industry sit-downs aimed at drawing up prompt payment rules in Ontario, for instance, Thurston remembers many of his members going into meetings thinking payment time-

lines were a non-issue.

It was a startling wake-up call. “‘They really hate us,’” he remembered one GC saying. “‘It’s not dislike, it’s not that they’re upset – they hate us.’”

Over the past 20 years, payment timelines have lengthened from an average of around 50 days to more than 70. Subcontractors, at times, have been made to wait

on-sitemag.com / 47

THE PAYMENT CHAIN

four months or more before getting paid.

The resulting tension has been palpable and new legislation that came into force Oct. 1 in Ontario is designed to fix the long lag time between work being finished and contractors, subcontractors and material suppliers collecting their money. By laying out no-nonsense, non-negotiable timelines for payment and establishing a new dispute resolution process through adjudication, the changes are also likely to help mend relations between generals and their subs.

“It’s going to be a big change, both

pay its subcontractors. Subcontractors have another seven days to dole out money to their sub-subcontractors, and so on down the pyramid.

Disputes over payment trigger the adjudication process, which aims to solve problems in real-time, help discourage work stoppages and lessen the amount of litigation that’s often built up by the end of a major project. Adjudicators, who are expected to be industry veterans, will have 30 days to make a determination on the dispute. The binding decision will keep

with adjudication and prompt payment, but I think working with adjudication brings a lot of transparency to the process,” said Kara Takagi, an Ottawa-based construction lawyer with Borden Ladner Gervais (BLG).

“Through the payment hierarchy of a construction project, you know who’s being paid and when, and you know when they’re not being paid, and you know how much and why,” she added. “That transparency will give a lot of comfort, especially to subcontractors and suppliers who are down the chain, so to speak.”

Under the new prompt payment and adjudication rules, the general contractor kicks off the payment process by delivering a “proper” invoice to the owner. Assuming there’s no dispute over payment, the owner then has 28 days to pay the contractor, which in turn has seven additional days to

construction projects moving when in the past, they may have ground to halt.

Ontario will be the first Canadian jurisdiction to bring in prompt payment and adjudication rules, but there are numerous international examples. The U.K., for instance, has used the process since 1998 and seen litigation decline considerably.

Ottawa recently passed legislation that will establish a prompt payment and adjudication process for federal projects starting in June 2020 and most provinces are moving on enacting regimes of their own.

The process does have its limitations.

Takagi pointed to a big claim for delay damages as one example of an issue adjudicators likely aren’t equipped to resolve within their 30-day window. Overall, however, she expects the clear-cut payment timelines and certain other stipulations

48 / OCTOBER 2019

included in Ontario’s new Construction Act to improve communications on job sites and even out the balance of power.

“Subcontractors, especially small subcontractors, they’re really kind of waiting for the people above them in the payment line for the money to flow down to them,” Takagi said. “Now, all parties involved have the right to issue a notice of adjudication, all parties are going to know when exactly they should be paid based on when money from the owner flows.”

Backed up by legal recourse, subcontractors that have been forced to keep mum on an issue in the past may be more likely to speak up without jeopardizing the relationship with the GCs they work with regularly.

Martin Luymes, vice-president of Government and Stakeholder Relations at the Heating, Refrigeration and Air Conditioning Institute of Canada (HRAI), which represents both contractors and manufacturers in the HVAC industry, noted keeping these working relationships intact is often vital, particularly for small shops.

“These guys tend to be pretty reluctant to say that sort of thing because it’s their bread and butter business,” he said. “They line up with a handful of builders and they’re certainly not keen to alienate any one of them.”

That doesn’t mean there isn’t tension.

Stephen Sell, president of the Ontario Electrical League, which represents a range of electrical contractors and other industry stakeholders, said the relationship between his members and GCs has been strained at times. Especially when working under a “pay when paid” clause, subcontractors might experience a months-long lag from when the work was finished to when their bank balance shows it, he noted.

“The electrical contractor could be doing a small portion of the job and they could be done and it could be months before that piece of the job is done as a whole for the GC,” Sell said. “So that’s where you start getting into your longer payment cycles.”

In watching payment timelines lengthen over the past two decades, Thurston admits

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part of the blame rests with the GCs. “We’re the gatekeepers and we should have been standing up to the owners… but we didn’t, we just passed it on,” he said.

“That wasn’t fair to the trades that had to hang on and hang on and hang on. But they too were subject to the contracts they were signing, so we were all part of making the problem worse.”

Like many other construction organizations, the Mechanical Contractors Association of Canada (MCAC) has been pushing the prompt payment file forward for years.

Pierre Boucher, the group’s CEO, did not want to get into specifics, but noted the relationship between GCs and the subtrades has had its share of ups and downs.

“You have great stories and some others that may not be the same outcome,” he said.

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Finding common ground on prompt payment has been a step in the right direction. And with the issue essentially settled in both Ontario and Ottawa, as well as making steady progress in other provinces, both generals and subs are keen to keep the clearer line of communications open in the future. Boucher pointed to the newly formed General Contractors Alliance of Canada as a great new resource the MCAC can work with on issues that affect the industry nationwide.

Likewise, Sell is cautiously optimistic about subs and generals taking a more collaborative approach after lobbying jointly on the prompt payment file.

“I just hope prompt payment helps the relationship between GCs and the subs so that we don’t have the adversarial battles going on,” he said. “Time will tell.”

Mending fences is sure to take time, and in the months ahead, all stakeholders in the construction industry – from owners and consultants, to subcontractors and material suppliers – will be focused on getting up to speed on unforeseen caveats enclosed within Ontario’s new rules.

“With any new process,” Sell said, “as much as you do up front, there’s always stuff that doesn’t happen exactly the way it’s planned in the initial stages and it’ll take a feeling out period before everything’s running the way you hope it’s running.”

50 / OCTOBER 2019 OnSite_Oct_PetroCanada.indd 1

2019-09-25 1:31 PM

SOFTWARE

By Jacob Stoller

Could blockchain be the new glue of contracting?

B

ased on what one reads and hears about blockchain, it’s not hard to conclude that it’s just another word for Bitcoin. However, while blockchain is the technology underpinning Bitcoin and other crypto currencies, digital money is only one of its many possible use cases. Blockchain can provide an immutable record that any series of events has taken place, including the fulfillment of conditions in a construction contract.

A general contractor might, in the not-too-distant future, manage a project using a blockchain-powered smart contract. In this scenario, all parties – the general contractor, the owner, the architect, the engineers, the subcontractors, the banks, the insurance companies and even the regulating authorities – would share a blockchain that provides instant verification when each step in the construction process has been successfully completed.

If the general contractor hired a plumber for a specialized installation, for example, the plumber might carry a blockchain identity that certifies his credentials. The equipment being installed would have blockchain tags attached to ensure its authenticity. The arrival of the plumber and completion of the job would be logged, as would final approvals by the owner and the building inspector.

The bank would automatically pay the plumber and the equipment supplier the moment the work meets the standards set out by the agreed-upon terms.

Scale this up to a large project with thousands of details and it’s not hard to see the benefits.

“The possibilities are exciting,” says Chris Dill, chief information officer of Omaha-based Kiewit Technology Group. “Today we have contract administrators, the owner has contract administrators, and we’re constantly going back and forth on ‘Did you do this? … How do we know you did? Did you do it strictly to the terms of the contract or not? Send me the documentation,’ etc. All this would be streamlined.”

Management of labour, quality control and improved planning are other promising areas, notes Mark Bryant, chief information officer of Edmonton-based PCL Construction. “In the construction business,” he says, “we’re a builder, we’re a logistics company, we’re a planning company, we’re a contract company, and we’re certainly an organization that expands and contracts with regard to labour as well. Blockchain can be applied to all those things in different ways, shapes and forms.”

sequential chain. Each transaction, such as the completion of a task, is recorded by adding a new block to the chain, like entering a line item in a paper-based ledger. The database is encrypted in such a way that once an entry is made, it can’t be changed. If an error has been made, a new block must be added to the chain to adjust it, maintaining complete transparency throughout the process.

The other feature is that unlike conventional databases that are stored on central servers, blockchain is jointly hosted by all participants through what is called a peer-to-peer network, and all are updated simultaneously when a block is added. There is no single access point though which the database could be compromised. A smart construction contract would be shared on a private blockchain, while Bitcoin runs on a public blockchain with millions of participants.

Blockchain has proven to be remarkably resilient – Bitcoin, which represents billions of dollars in value, has never been hacked in its nine years of existence. No wonder the banks and insurance companies are showing so much interest.

NEXT STEPS Blockchain is still in its very early days, and Dill notes that compared with AI, few people in construction are talking about it.

“If you look at AI, Microsoft and Amazon have it baked into their platforms,” he says, “so you can deploy AI in your applications without having PhD experts on your team. Blockchain needs to get there, and it isn’t there yet.”

PCL envisions adding blockchain capabilities to its in-house construction platform, Job Site Insights.

“Our strategy is that if we have a very specific need and it doesn’t exist in the marketplace, we have the capability to build it,” says Bryant, “but my preference would be to partner with an organization that has built something that is affordable that can enhance our business.”

Bryant’s team hasn’t done any coding yet or engaged any third parties specific to blockchain, but a few possibilities are under discussion. “We’ll get started on something in 2020,” says Bryant, “but I can’t tell you what that is.”

Stay tuned!

HOW IT WORKS A blockchain is essentially a database with two unique features.

As the name implies, it consists of blocks of data arranged in a

Jacob Stoller is principal of StollerStrategies. Send comments to editor@on-sitemag.com on-sitemag.com / 51

RISK

By David Bowcott

The level playing field assumption: A ‘go or no-go’ cautionary tale

Y

our construction company is about to bid what you believe to be a very attractive new project. Your firm has been prequalified along with three others, the RFP document has been issued and you are set to compile your best terms for the labour and material necessary to complete the job.

During the bidding process, you are making a lot of assumptions about your competition – and the most common one made by contractors is that they are on the same “level playing field” as their competitors. In today’s construction marketplace, jumping to this conclusion could be a very costly mistake.

With the pace of change at an all-time high, construction today is an extremely dynamic space. The Canadian construction industry has been flooded with new contractual models, operational best practices, technologies, engineered solutions, globalized supply chain strategies and construction materials. In such a fast-changing market, you cannot assume you are on the same level playing field as your competition. It is vital your firm is up to speed on all the new solutions being used to improve productivity and reduce risk.

So, how do you stay up to date? Taking a close look at some of the key areas of change will help your company create a roadmap: 1. Contractual models – Is your firm familiar with all of the contractual models being utilized both at the prime level of the contract and below? Are you familiar with public-private partnership models?

Have you worked on construction management at risk contracts? Do you know what an Integrated Project Delivery procurement model looks like? It is absolutely vital that you are not only up to speed with these delivery models, but also familiar with the usual risk allocation to all contract stakeholders under the models.

2. Operational best practices – With the drive for increased productivity pushing contractors to continuously improve their operations, many new practices have been introduced. Both large-scale improvement practices like Lean construction and more focused efforts, such as improved counter-party risk prequalification and improved “go or no-go” practices, are key areas to watch. Globalization has also been a significant contributor to construction stakeholders exchanging and adapting operational practices with the help of joint venture partners from different parts of the globe.

3. Technology – If you haven’t noticed yet, there is a tech explosion within the community that designs, constructs and operates the built environment. The following are some areas you should be keenly aware of as they are improving productivity and reducing risk, thus making the bids of your competition more competitive: a) Technologies that vet design documents for accuracy

52 / OCTOBER 2019

b) Technologies that assess your proposed project schedule c) Technologies that reduce the risk of injuries and speed rehab d) Technologies that replicate the as built project in real-time and compare it to the underlying design/BIM model e) Technologies that inventory all data in an immutable format to ensure there is a single source of project truth f) Technologies that can limit risk by providing real-time weather reports with accuracy within the hundreds of metre range g) Technologies that can sense water damage h) Technologies that can ensure your subcontractor and suppliers are up for the job you have given them i) Technologies that monitor the asset post-construction and provide predictive maintenance warnings 4. Engineered solutions – Manufactured construction, top-down construction, enclosed jump-from systems and floating foundations are just some of the engineered solutions that could be used by your competition to gain an upper hand.

5. Supply chain solutions – The globalization of construction has opened up many new supply chain markets that contractors are accessing to create advantages around the pricing of manufactured components and materials used for construction projects. Further contractual strategies are being utilized to optimize pricing for labour and materials used on projects by tapping into the suppliers and raw material providers at a more leveraged entry point.

6. Construction materials – Several new materials have been introduced to the marketplace including cross-laminated timber and self-healing concrete. In addition, the way materials are transformed into project components has changed – think 3D printed materials. Monitoring these new materials and the methods used to bring them to the job site, will help ensure you remain competitive.

The field is not level in today’s construction marketplace and your firm needs to be diligent when it comes to assessing the “right” job for your company to pursue. You should not only know your advantages and disadvantages, but should try your best to understand the strengths and weaknesses of your competition.

Compiling as much knowledge about how level the playing field is going into a job and establishing a strong “go or no-go” vetting process will ensure you take advantage of your strengths, exploit your competition’s weaknesses, and win profitable work.

David Bowcott is Global Director – Growth, Innovation & Insight, Global Construction and Infrastructure Group at Aon Risk Solutions. Please send comments to editor@on-sitemag.com.

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2019-08-06 11:04 AM

CONTRACTORS & THE LAW

By Dirk Laudan and Siobhan Small

The ‘prevention principle’ in contracts – schedule extensions and liquidated damages

T

he owner of an infrastructure project agreed to provide engines for the contractor to install, and their installation was on the contractor’s critical path. Because of supplier problems, the engines failed to arrive on time. The owner knew this would probably impact the schedule, but had already extended it for unrelated reasons, and thought the contractor could accelerate to make do without a further extension. The contractor was late anyway, much later than could reasonably be blamed on the late delivery. The owner tried to recover contractual liquidated damages from the contractor. Can it?

This was the exact question before the B.C. Court of Appeal in the 1966 case Perini Pacific Ltd v Greater Vancouver Sewerage & Drainage District. Even though part of the delay was the contractor’s fault, the court decided the liquidated damages clause of the contract could not apply. By failing to ensure the engine delivery, the owner had interfered with the contractor’s ability to complete within the time required, so the owner ought to have extended the schedule to account for that. Because the owner had failed to do so, it could not hold the contractor to the original completion date. Instead, the contractor was required to complete within a “reasonable” time. For the liquidated damages clause to operate, however, there had to be a fixed completion date from which to calculate the number of days of delay. The owner’s interference made the liquidated damage clause inoperative, so the contractor was not required to pay them.

This is a specific example of the “prevention principle” in contracts. One party to a contract cannot properly complain if it causes the other party to fail to meet an obligation. The prevention principle operates even if one party does not completely prevent the other party’s contractual performance. It is enough to interfere with it seriously, as in the Perini case. An English court has described the principle in this way: “A building owner is not allowed to insist upon the penalty for delay if, by ordering extra, he has prevented the builder from completing the work by a specified time.”

Owners can avoid this problem with proper legal drafting and effective contract administration. If the consultant or owner provides a reasonable extension to the contract time, under the applicable contract mechanism, then a new fixed completion date for the contract is established. If the contractor is then late, without proper excuse, it is possible to calculate damages from the

54 / OCTOBER 2019

new date. Including schedule-extension clauses in construction contracts is thus as much for the benefit of the owner as it is for the contractor. Conversely, failing to grant appropriate schedule extensions is potentially harmful for everyone.

Problems can arise even with an appropriate extension clause.

The consultant may be given authority under the contract to decide the amount (if any) of schedule extension to be granted for the owner’s interference and the contractor may disagree strongly with his or her decision. The contractor may be actually delayed, but it may fail to meet a short-fuse contractual time period for giving notice of delay. The owner may interfere with the decision of the consultant. The consultant may fail to decide on the schedule extension time until after the contract is completed – in such a case, the contractor could be in the difficult position of not knowing the supposed completion date until after the contract is complete. The contract may not apply clearly to the specific situation, or it may seem to override the prevention principle.

Even if an owner clearly did interfere with the contractor’s work, the actual effect on the project schedule may be difficult to prove.

Even where the interference was a provable cause of delay, schedule extensions can have multiple causes, arising from “concurrent delays.” Situations like these can quickly lead into deep legal waters. The thing to remember in such situations is that a party to a contract should not benefit from its own wrong.

All of this suggests that owners, contractors and consultants should bear the prevention principle in mind in contract drafting, contract administration and when seeking to resolve construction disputes. The principle tends to encourage fair dealing. On the other hand, it also adds considerations to the legal framework that can go beyond what is clearly set out in the contract language, which can lead to misunderstanding and dispute. Perhaps most importantly, it can be a touchstone for construction contractors in avoiding unfair treatment. Contractors should know their rights with respect to schedule extension, especially where the contractor’s ability to perform may be seriously impaired by the owner.

Dirk Laudan and Siobhan Small practice construction law at Borden Ladner Gervais LLP. This article is for information purposes only and may not be relied on for legal advice. Please send comments to editor@on-sitemag.com.

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